Owens Corning (NYSE:OC) Posts Quarterly Earnings Results, Misses Expectations By $0.63 EPS

Owens Corning (NYSE:OC) posted its earnings results on Wednesday. The construction company reported $2.44 EPS for the quarter, missing the consensus estimate of $3.07 by ($0.63), FiscalAI reports. Owens Corning had a positive return on equity of 19.14% and a negative net margin of 4.42%. The business had revenue of $2.49 billion for the quarter, compared to the consensus estimate of $2.62 billion. During the same period in the previous year, the firm earned $3.67 earnings per share. The company’s revenue was down 7.3% on a year-over-year basis.

Here are the key takeaways from Owens Corning’s conference call:

• Owens Corning generated $489 million in adjusted EBITDA at a 20% margin and $622 million in free cash flow in Q3 despite lower volumes and inflation. Revenue declined $195 million year over year, while a $476 million non-cash Doors impairment contributed to a reported net loss of $248 million.
• The company expects Q4 revenue of $2.0 billion–$2.2 billion and an enterprise adjusted EBITDA margin of 10%–12%, reflecting weak demand, inflation and transportation costs, seasonality, and additional downtime. Roofing distributors are expected to continue destocking after a second consecutive year of below-average storm activity.
• Roofing maintained a 29% Q3 EBITDA margin despite lower sales, while Insulation revenue rose 6% and EBITDA increased slightly, supported by non-residential and European demand. Management expects continued non-residential strength, though it cautioned that Insulation’s Q4 growth rate is not expected to remain at the recent pace indefinitely.
• Doors sales fell 11% and the segment posted a 5% Q3 EBITDA margin as lower volumes and inflation outweighed pricing and cost actions. Management expects low-single-digit Q4 margins amid continued weak markets, inflation, tariffs, and production downtime.
• Management reiterated its longer-term potential to reach approximately $12.5 billion in revenue, mid-20% EBITDA margins, and at least $1.5 billion in annual free cash flow in better markets, supported by investments in capacity, productivity, and customer programs. It is prioritizing debt reduction for now and expects to complete the remaining portion of its $2 billion shareholder-return commitment in 2027.

Owens Corning Stock Performance

Shares of Owens Corning stock traded down $3.25 during trading hours on Friday, hitting $121.01. 1,197,327 shares of the company’s stock traded hands, compared to its average volume of 1,238,916. Owens Corning has a 12-month low of $97.53 and a 12-month high of $159.91. The stock has a market capitalization of $9.57 billion, a price-to-earnings ratio of -22.75, a PEG ratio of 3.77 and a beta of 1.31. The company has a fifty day simple moving average of $122.42 and a 200-day simple moving average of $126.13. The company has a debt-to-equity ratio of 1.33, a current ratio of 1.13 and a quick ratio of 0.67.

Owens Corning Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, November 5th. Shareholders of record on Monday, October 19th were paid a $0.79 dividend. This represents a $3.16 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date was Monday, October 19th. Owens Corning’s dividend payout ratio is -59.40%.

More Owens Corning News

Here are the key news stories impacting Owens Corning this week:

• Positive Sentiment: Wells Fargo raised its price target from $125 to $133 and maintained an Overweight rating, implying potential upside from the then-current share price. Wells Fargo recommendation
• Neutral Sentiment: Truist raised its target from $115 to $120 but kept a Hold rating, while a separate analyst roundup described Owens Corning as a bullish industrial-goods pick without providing further details. Truist target update Analyst roundup
• Negative Sentiment: UBS cut its target sharply from $198 to $170, although it retained a Buy rating. Deutsche Bank also lowered its target, from $145 to $134, while keeping Buy. UBS target update Deutsche Bank target update
• Negative Sentiment: RBC lowered its target from $127 to $119 and assigned Sector Perform, signaling limited upside at the time of the call. RBC recommendation
• Negative Sentiment: Owens Corning forecast fourth-quarter revenue of $2.0 billion–$2.2 billion and adjusted EBITDA margins of about 10%–12%, citing storm-related disruption and inflation. Its latest reported quarter also missed earnings and revenue estimates, with revenue down 7.3% year over year. Owens Corning fourth-quarter outlook

Insider Activity at Owens Corning

In related news, insider Rachel Barthelemy Marcon sold 900 shares of the firm’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $144.07, for a total transaction of $129,663.00. Following the completion of the sale, the insider owned 21,449 shares in the company, valued at approximately $3,090,157.43. This trade represents a 4.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.92% of the stock is owned by insiders.

Analyst Ratings Changes

OC has been the subject of a number of recent research reports. Weiss Ratings reissued a “sell (d+)” rating on shares of Owens Corning in a report on Monday, September 21st. Bank of America dropped their target price on Owens Corning from $155.00 to $145.00 and set a “buy” rating on the stock in a report on Tuesday, October 27th. Evercore set a $185.00 target price on Owens Corning in a research report on Thursday, October 1st. Truist Financial lifted their target price on Owens Corning from $115.00 to $120.00 and gave the company a “hold” rating in a research report on Thursday. Finally, Vertical Research downgraded Owens Corning from a “hold” rating to a “sell” rating and set a $106.00 price target for the company. in a report on Wednesday, October 7th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have given a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $142.43.

Owens Corning Company Profile

Owens Corning (NYSE:OC) is a global building materials company that develops and manufactures products used in residential, commercial and industrial construction. Its offerings are designed to improve energy efficiency, weather protection, durability and comfort in buildings.

The company’s primary businesses include roofing, insulation and doors. Its products include asphalt roofing shingles and components, fiberglass and mineral wool insulation, and residential and commercial door systems.